JOHANNESBURG (miningweekly.com) – Diversified miner Xstrata on Thursday confirmed that it was in discussions with commodities trader Glencore about a possible merger.

Glencore, which already owns 34% of Xstrata, is required under UK takeover rules to announce by no later than March 1 whether it intended to make an offer for Xstrata.

Speculation emerged in 2010 that Glencore was planning a merger with Xstrata.

Newswire Bloomberg, which reported earlier on Thursday that the two companies were nearing an agreement, said the combined company might be valued at £52-billion pounds after excluding Glencore’s stake in Xstrata.

Shares in Swiss-based Xstrata climbed 11% in London on the news.
 

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